Back on March 27, Keith wrote a lead story for Money Morning in which he articulated seven very clear reasons that investors should consider shorting Apple's stock.

And that was a couple of weeks after he detailed a "put" option strategy – in essence, a "short" trade – that resulted in a 47% profit (in just two days, no less) for the subscribers of his Strike Force trading service who followed his recommendation (a short-term reversal delivered those gains).

I wanted to know what tipped him off that a reversal was coming – as well as what he was predicting for Apple's shares going forward.

"BP, it was clear to me that this kind of reversal was coming – and sooner rather than later," Keith said during a private briefing late last week. "The shares had soared 75% in just five months – one analyst actually described the performance as "euphoric.' Suddenly, we're seeing all these mainstream-news-media stories explaining why Apple shares are going straight to $1,000. But I know from my own experience as a professional trader that even the shares of the best companies on earth don't go straight up. I happened to time it perfectly and help Strike Force subscribers take advantage of the reversal I just knew was in the offing."

Key Questions for Apple Stock

The way we see it, the Apple stock sell-off raises these three key questions for investors:

No. 1: What's going to happen to Apple shares in the near-term?

No. 2: If the stock is headed for a volatile stretch, is there any way to profit until the smoke clears?

No. 3: What's the long-term outlook for Apple – both the company and the stock?

Having worked with him for five years, I've seen Keith make gutsy calls like this – and have them pay off big – time and time again. Since I knew you'd be as interested in his answers as I was, we wanted to share them with you.

Here's what Keith had to say.

First and foremost (Question No. 1), Keith said he expects the near-term volatility in Apple's stock to continue.

That doesn't mean you can't make money right now (the issue I raised in Question No. 2). Keith said he's watching for new opportunities to "short" the stock and generate additional profits for Strike Force subscribers.

"Everyone's been focusing on the drop in the share price, and are worried that carriers may cut subsidies for both iPhone and iPad users – which would naturally erode overall corporate profits," Keith told me. "But the bigger story is going to be played out when Apple releases its earnings [tomorrow]. I think Apple is going to miss on key sales figures related to the iPad. If they do, it's likely to spark multiple downgrades in the weeks ahead, leading to a downside "snowball effect' as the stock corrects further" – and allowing the "shorts" to profit.

Don't think for a minute that the volatile stretch Keith is expecting will finish his interest in Apple's shares: He says the long-term outlook for this company (Question No. 3) is excellent. That's why – if the stock drops far enough, and seems to find support – Keith will look for an opportunity to turn around and become a buyer.

"If I get a sense that there's a point we can step into the fray, we'll be buying," Keith told me. "Even as we speak, institutional traders are looking to short the stock and pound the price down even more. Here's the funny thing about that: Their goal is the same as ours – to get in at a much lower price before riding the stock up to $1,000 a share. I expect that this process could take a quarter or two – but when the opportunity presents itself, you can bet that I'll act quickly."

Editor's Note:With his 24/7 access to Money Map Press gurus like Keith Fitz-Gerald, Shah Gilani and Dr. Kent Moors, Executive Editor Bill Patalon is able to provide Private Briefing subscribers with a daily look at some of their key recommendations.

Keith Fitz-Gerald's call on Apple is just one of the many. Since its launch, Private Briefing has delivered as many as 45 winners.

Two dozen of them have been double- or triple-digit gainers–all in just eight months.

Before he moved into the investment-research business in 2005, William (Bill) Patalon III spent 22 years as an award-winning financial reporter, columnist, and editor. Today he is the Executive Editor and Senior Research Analyst for Money Morning. With his latest project, Private Briefing, Bill takes you "behind the scenes" of his established investment news website for a closer look at the action. Members get all the expert analysis and exclusive scoops he can't publish... and some of the most valuable picks that turn up in Bill's closed-door sessions with editors and experts.

I was puzzled that the Apple stock dropped just a few days before the vote where Congress agreed to stop Insider trading privileges for Congress …
By the time that the president signed the Bill… shares had dropped close to 10% .
Could there have been a sell-off of Apple by government Insiders who wanted to take their profits before doing so became illegal ?
regards…
Ron

You have a plan.. You need to drive the stock price lower because you were too lame to buy it when you should have so you write some lame articles predicting the future. When people actually believe that "You just knew it was going to reverse" then the price MIGHT go down but if the prices go up then nobody will read your articles anymore.. Smart people already own it and will hold or buy more daily.. Stop trying to screw the market!

I agree with Scott… You can tell the people that have missed the boat and are under invested with this company. They are always reaching for excuses to sell… Classic example was six months ago when Steve Jobs passed away, the stock was going to get hammered… look where the stock is today… It just did not happen.

apple has a limited pool of customers. so to make money they have to release a newer version of one their products just about once every quarter forcing the existing customers to discard the relatively new product and get the new one, hence generating "profit".
I suppose this will work for a while if you have some arab sheikhs and princess buying a whole bunch at a time and throwing them into the persian gulf.
how could stocks of mercedes bens or rolex go through the roof in such a short time? is it a super bubble? oh no, nobody dares to mention that word but if this was gold then bubble would've been attached to its name when its economic fundamentals testified by every gold expert suggests it should be way higher than what it is now.
aaple shares, like gold and silver, are rigged by the same entities but in a opposite direction

All these hedge fund guys are trying to manipulate prices through their "analysts".
I would like to see these analysts put their money where their mouth is (without a $300B fund backing the manipulation).

The diference between Apple and this writer is one: customer stickiness
I was on Windows for 30 years. 6 months after getting my 1st Mac, there is no going back. Mac for life.
On the other hand – reading 6 lines from this "expert" and I am totally clear – never again.
Smells bad, real bad…

Keith & William… brilliant call on the AAPL quarter… Oh my, the stock is up $55 in premarket this morning. So, glad that I did not listen to either of you… Classic bad advice of trying to hard to call a turn in a stock… There is an old saying the trend is your friend…

Hmm, where's another radical article from "KEITH FITZ-GERALD" now? Oh, uh… there isn't one because he advocated shorting Apple… that always make sense. Pay margins > go against the grain of a growing economy > bet against a company with a growing profit margin, growing cash reserves, growing sales, and simply, the most innovative company for consumer electronics we have yet to see.

Articles like these are designed to feed into consumers' fears and emotions to attract hits for a website. Short term predictions about the market place are rarely accurate.

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